Strauss Group (STRS) Q1 2026 earnings summary

Executive summary

• EBIT rose 68% year-over-year to ILS 316 million, achieving a 10.5% margin, with net income up 126% to ILS 181 million and free cash flow improving by nearly ILS 450 million.

• Net sales reached ILS 3 billion, up 0.4% year-over-year, or 2.5–3.3% excluding FX and divestments, driven by volume and mix.

• Volume growth of 3.5% outperformed global peers, despite lower international coffee sales.

• Strategic focus on innovation, portfolio optimization, and non-organic growth, including the Yoki acquisition in Brazil.

• All core business segments are aligned for continued growth, with a new long-term strategy to be announced by year-end.

Financial highlights

• Group sales reached ILS 3 billion, up 0.4% year-over-year; gross profit increased 22.6% to ILS 957 million, with gross margin at 31.9%.

• EBIT margin improved to 10.5%, with record EBIT of ILS 316 million.

• Net income rose to ILS 181 million, up 126% year-over-year.

• Free cash flow improved by approximately ILS 450 million year-over-year.

• Net debt declined to ILS 2.35 billion; net debt/EBITDA improved to 1.5x.

Outlook and guidance

• Expectation to maintain double-digit EBIT margin (10%+) in upcoming quarters and targeting 10–12% by 2026.

• Anticipated continued volume growth, with more moderate revenue growth due to green coffee price corrections.

• Lower cocoa prices expected to further improve confectionery margins in coming quarters.

• New long-term strategy for 2027–2030 to focus on international growth.

• CAPEX expected at 5–7% of sales through 2026, with 85% of sales from core business.